Cardano ($ADA) Decentralized Exchange Minswap to Launch Passive Income Staking for $MIN Token

Minswap passive income staking is coming to Cardano’s decentralized exchange for the $MIN token. The Minswap team announced that $MIN Staking will commence on October 2nd 2023.

Minswap passive income staking at a glance

$MIN Holders will be able to stake their $MIN for $ADA rewards coming from Trading Fees. Staking periods are 1, 3, 6 or 9 months with corresponding boosts. However, if a holder unstakes $MIN early, they forfeit all accrued rewards.

Introduction to $MINomics V2

Recent discussions within the Minswap community have centered around $MINomics. $MINomics V2 represents a series of enhancements that aim to fortify the utility of $MIN within the Minswap protocol. The initial step in this process involved determining the future of the Fee Switch.

Then, on August 19, 2023, a successful vote took place to redirect $ADA generated from the Fee Switch towards $MIN Stakers. Below, you’ll find a detailed explanation of the mechanics behind $MIN Staking and its rollout on October 2, 2023, at 9am UTC.

How Minswap passive income staking works

Starting October 2, 2023, holders of $MIN will have the option to stake their tokens to receive $ADA rewards generated from the Fee Switch. Each time a swap occurs on Minswap, there is a 0.3% fee. Of that fee, 0.05% serves as the Fee Switch. This switch redirects the $ADA it generates to benefit $MIN Stakers.

Monthly, the $ADA rewards that accumulate over the entire month pay out in the subsequent month. This mirrors the current distribution model for LPs.

Meanwhile, on August 21st, the previous mechanism that diverted $ADA from the Fee Switch for $MIN/$ADA LP Tokens became inactive. As a result, $MIN Stakers will receive the $ADA rewards that accrued from August 21st to September 31st.

You can view the address where ADA Rewards accumulate through the Fee Switch here:

addr1qx40kyvkgdxtsdladusny09r0vczmlmrsl52sjel528674jj2c79gy9l76sdg0xwhd7r0c0kna0tycz4y5s6mlenh8pqg82qtn

In addition, $MIN stakers will effectively “soft-lock” their tokens for a specified period. This means that stakers have the option to unlock their $MIN at any time. However, doing so prematurely will result in forfeiture of accrued rewards. Each month, the forfeited rewards from early unstaking add up, and they go back to $MIN Stakers thereafter.

Minswap passive income staking rewards

To cater to various preferences, staking periods run 1 month, 3 months, 6 months, or 9 months. Each period offers a distinct boost on rewards. This means that the longer you stake, the bigger the boost on your rewards. In the initial iteration of $MIN Staking, the boost structure is as follows:

• Staking $MIN for 1 month provides an unboosted $ADA APR.
• Staking $MIN for 3 months yields a 3x boosted $ADA APR.
• Staking $MIN for 6 months results in a 6x boosted $ADA APR.
• Staking $MIN for 9 months grants a 9x boosted $ADA APR.

These rewards for $MIN stakers constitute “Real Yield.” This means they come directly from Swap Fees and pay out in $ADA. They do not involve inflationary rewards. Instead, they come purely from organic Trading Volume.

It’s also worth noting that the design of the $MIN Staking system allows for the addition of other non-$ADA rewards on top for $MIN Stakers.

Upon the conclusion of the staking period, your $MIN effectively unstakes, and you may claim rewards at any time. Remember to re-stake your $MIN if you wish to continue receiving real yield in $ADA!

Benefits for $MIN stakers

In its current form, $MIN Stakers will enjoy the following two primary benefits:

1. $ADA Real Yield that comes directly from Trading Fees on the platform.
2. Governance influence equivalent to any $MIN Holder, with equal voting power.

However, please note that, at present, $MIN Stakers do not have access to benefits such as reduced Batcher Fees.

Key takeaways

• $MIN Staking will commence on October 2nd 2023.
• Stakers receive $ADA rewards coming from Trading Fees.
• Staking periods are 1, 3, 6 or 9 months with corresponding boosts.
• Early unstaking means forfeiting all accrued rewards.

Related reading on Creative Geniusess

• Minswap (MIN): Easy 4-100x and the Best Decentralized Exchange Built on Cardano (ADA) covers Minswap as an open sourced and audited AMM DEX.
• Paribus (PBX) Listed for Trading on Cardano (ADA) DEX Minswap covers the second Cardano DEX to list the coin.
• $MILK and Muesliswap on Cardano: Unique DEX/Aggregator/Passive Income Gems with 10 Million Max Supply covers a standout cryptocurrency on the Cardano ($ADA) blockchain.

For background, learn more about Cardano on Wikipedia.